PORTLAND, Ore., Oct. 12 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) reported third quarter earnings of $35,735,000, or $.32 per share
(diluted), up 78% from third quarter 1997's $.18 per share (diluted) and up
52% from second quarter 1998's $.21 per share (diluted). Earnings for the
first nine months were $81,830,000 or $.73 per share (diluted), up 59% from
$.46 per share (diluted) for the similar period in 1997.
Sales for the third quarter were $956,794,000, up 8% from third
quarter 1997.
The excellent results reflected improved production volumes across most of
the company's product lines and improved markets for the company's unbleached
paper products as compared to last year's third quarter, according to
William Swindells, chief executive officer and chairman of the board. Third
quarter results also reflect strength in some of Willamette's building
materials markets, largely due to continuing strong housing starts. "The
benefits of this strong demand were diluted by large volumes of imports,"
Swindells said. "That factor, plus the normal seasonal reduced demand for
building materials may dampen fourth quarter earnings."
Current markets for both bleached and unbleached paper products reflect
greatly reduced levels of economic activity in Asia and a slowing in domestic
demand, Swindells noted. This has resulted in weakening prices for uncoated
free sheet as well as linerboard and corrugated medium, as compared to second
quarter 1998.
"Markets considered, our results reflect our improved efficiencies from
recent capital projects," Swindells said. "While we expect further erosion of
prices in most product lines in the fourth quarter of this year, our
efficiencies should continue to cushion their effect on our results."
Willamette Industries is an integrated forest products company with
101 manufacturing facilities in the U.S., Europe and Mexico. The company
manufactures building materials, fine paper products, corrugated containers
and paper bags. Willamette owns 1.8 million acres of timberland in the U.S.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and uncertainties and
actual results could differ materially from those projected. Such risks and
uncertainties include, but are not limited to, general business and economic
conditions, competitive products and pricing, as well as fluctuations in
demand; potential equipment malfunction; and plant construction and repair
delays. Please refer to Willamette Industries' Securities and Exchange
Commission filings for further information.
WILLAMETTE INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
1998 1997
Quarter Ended September 30:
Basic Earnings Per Share $0.32 $0.19
Diluted Earnings Per Share $0.32 $0.18
Sales $956,794,000 $888,795,000
Earnings Before Taxes $53,335,000 $32,958,000
Net Earnings $35,735,000 $20,697,000
Average Diluted Shares
Outstanding (A) 111,696,000 111,916,000
Nine Months Ended September 30:
Basic Earnings Per Share $0.73 $0.47
Diluted Earnings Per Share $0.73 $0.46
Sales $2,803,259,000 $2,623,335,000
Earnings Before Taxes $122,134,000 $82,427,000
Net Earnings $81,830,000 $51,764,000
Average Diluted Shares
Outstanding 111,877,000 111,600,000
(A) Share and per share amounts restated to reflect 2-for-1 stock split on
September 12, 1997
WILLAMETTE INDUSTRIES, INC. October 12, 1998
Quarterly Statistical Data
Third Quarter 1998
Third Quarter Year-to-Date
1998 1997 1998 1997
PRODUCT SHIPMENTS
Lumber - 1" 197,024 145,778 569,482 465,931
Plywood - 3/8" 335,844 342,252 1,035,333 1,183,120
Oriented Strand Board
- 3/8" 81,566 80,513 228,449 234,271
Particleboard
- 3/4" 158,124 147,737 466,086 446,299
MDF - 3/4" 136,198* 115,313* 410,730** 352,362**
Corrugated - MSF 6,282,503 5,948,653 18,347,107 16,787,288
Grocery Bags - Tons 28,085 30,416 80,060 87,761
Business Forms - Tons 84,598 90,266 248,311 269,658
Cut-sheets - Tons 142,830 126,935 398,076 363,934
Brown Mills - Tons 447,539 435,657 1,334,122 1,272,399
Market Pulp - Tons 28,504 36,022 94,160 100,304
White Mills - Tons 361,714 281,783 922,642 838,178
* Quarter includes 53,882 and 37,099 for International MDF for 1998 and
1997, respectively.
** Year-to-date includes 171,974 and 124,805 for International MDF for
1998 and 1997, respectively.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials
Group $328,374 $311,712 $942,441 $972,489
Paper Group 628,420 577,083 1,860,818 1,650,846
Operating Earnings: ***
Building Materials
Group 34,216 30,616 65,002 101,784
Paper Group 65,248 40,867 183,289 97,444
Corporate (10,927) (9,888) (32,710) (30,382)
*** Operating earnings in prior year were restated to exclude the
allocated portion of corporate.
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 805,486 766,127 2,398,752 2,272,556
Selling & Administration 62,771 61,073 188,926 181,933
Other Income - Net 1,751 1,039 4,505 1,829
Interest Expense - Net 36,953 29,676 97,952 88,248
Capitalized Interest 425 5,416 12,513 13,316
Income Taxes 17,600 12,261 40,304 30,663
Tax Rate 33.0% 37.2% 33.0% 37.2%
Depreciation
& Amortization 83,025 71,084 231,869 212,268
Fee Stumpage 17,545 15,152 42,447 40,597
Deferred Taxes 8,782 4,904 15,346 13,876
Plant, Property
& Equipment (1) 99,711 131,742 303,735 361,990
Timber, Roads
& Reforestation 3,158 6,518 14,954 16,876
(1) Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 111,399 111,101 111,393 110,889
Diluted 111,696 111,916 111,877 111,600
Note: Certain reclassifications have been made to prior year's data to
conform with 1998 presentation.
SOURCE Willamette Industries, Inc.
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CONTACT:
E. Jane Sinnema of Willamette Industries,
Inc., 503-721-8642
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